What is a group of investment banks that jointly underwrites a security issue called?

A group of investment banks that comes together to jointly underwrite a securities issue is referred to as a syndicate. This arrangement allows the participating banks to spread the financial risk among themselves while providing the necessary capital and market reach to issue the securities effectively. The syndicate's collaborative approach enables it to underwrite larger deals that might be beyond the capacity of a single bank and ensures that they have enough resources to handle potential market fluctuations during the offering period.

In capital markets, the syndicate typically appoints one of the banks as the lead underwriter, who coordinates the deal and is responsible for managing the overall issuance process. The other members of the syndicate assist in selling a portion of the offered securities, thereby enhancing distribution efficiency and potentially increasing the final offering price.

The terms coalition, consortium, and alliance are generally used in different contexts and do not specifically pertain to the structure of investment banking operations regarding securities underwriting. A coalition usually refers to a temporary alliance formed for a specific purpose, a consortium often describes a group formed for a collective enterprise, and an alliance can signify a more permanent partnership aimed at mutual benefit across various fields. In terms of investment banking, syndicate is the specific terminology that accurately conveys the collective underwriting effort.